Broker Not Negligent When Insured Rejects Additional Coverage

Plaintiff was injured while employed as a painter at property owned by Allen Skriloff. Coverage was denied because injuries to employees, contractors and employees of contractors were excluded. Plainitff sued Skriloff and obtained a jury verdict of $6.1 million. Skirloff assigned to plaintiff all rights and claims held against the insurer and insurance brokers.

The appellate division affirmed. An insurance broker had a common-law duty to provide requested coverage within a reasonable time and could be held liable for negligence or breach of contract when a client established that a specific request was made for coverage that was not provided.

Here, Rosenzweig informed Skriloff that the policy being issued did not cover injuries to construction workers, but such coverage was available for an additional $5,000. Skriloff never requested that Rosenzweig obtain a policy that covered injuries to construction workers. At his deposition, Skriloff testified that he was aware that the policy did not provide coverage for injuries to construction workers and explained that he did not procure the more expensive policy because he mistakenly believed that his contractor already had liability coverage for his employees.

Plaintiff was injured while employed as a painter at property owned by Allen Skriloff. Coverage was denied because injuries to employees, contractors and employees of contractors were excluded. Plainitff sued Skriloff and obtained a jury verdict of $6.1 million. Skirloff assigned to plaintiff all rights and claims held against the insurer and insurance brokers.

The appellate division affirmed. An insurance broker had a common-law duty to provide requested coverage within a reasonable time and could be held liable for negligence or breach of contract when a client established that a specific request was made for coverage that was not provided.

Here, Rosenzweig informed Skriloff that the policy being issued did not cover injuries to construction workers, but such coverage was available for an additional $5,000. Skriloff never requested that Rosenzweig obtain a policy that covered injuries to construction workers. At his deposition, Skriloff testified that he was aware that the policy did not provide coverage for injuries to construction workers and explained that he did not procure the more expensive policy because he mistakenly believed that his contractor already had liability coverage for his employees.